I was amused by the FT’s juxtaposition of a report on some growth in the Irish economy, about which the Irish Development Authority had obviously delivered some puff to the press, with the true underlying cause, which the FT sees as tax abuse.

Many foreign multinationals operating in Ireland supply goods and services throughout the European region and book their profits and pay tax on these in Dublin. Other companies, including Google, use legal tax avoidance strategies known as the “Double Irish” and “Dutch Sandwich” to book revenues in Ireland but shift these through the Netherlands and Bermuda to reduce their tax bill.

Yes, of course they are. But he was forced to move on, presumably by press questioning:

He defended Ireland’s 12.5 per cent corporate tax rate and said the country did not employ harmful tax practices.

“Lots of people have criticised it because they don’t like what we do but it has always been clear that it does not breach any rules in terms of harmful tax competition. It is fair transparent and uniform across all companies,” he said.

Mr Bruton said Ireland’s corporate tax rate was of “absolutely crucial national interest” and a “red line” issue for the government.

4 Responses to “Ireland maintains it’s not a tax haven, but they all say that”

Yes, even though the Irish Government wants the 12.5% Corporation tax rate and it has the full support of the Irish population they should not be allowed to keep it……All in the interest of saving democracy……..Just not their own democratic decisions!